In 2006 Sonae Sierra achieved a total net profit of €270.6 million, which represents a 23% increase in comparison to 2005. EBITDA grew by 20%, from €5.7 million to €150.3 million, direct profits increased by 22%, from €68.8 million to €83.7 million and indirect profits grew 24% from €150.7 million to €186.9 million.
All main financial indicators show a remarkable growth in 2006, confirming Sonae Sierra's business strategy, whose main pillars are the international expansion of its business and the consolidation of its leadership in Portugal.
As for the 2006 highlights, we underline the reinforcement of the company's portfolio, with
the inauguration, in Portugal, of shopping and leisure centre RioSul, in Seixal, as well as the launching of an important set of new developments in every market where the company operates, namely in Spain, Greece, Italy, Germany and Brazil.
The significant reinforcement of our partnerships with companies able to contribute knowhow and investment capacity to the company's business is also noteworthy. The most relevant example is the partnership (50%/50%) established for the development of Sonae Sierra's operation in Brazil, with Developers Diversified Realty (DDR), a company listed in the New York stock exchange, and a leader in the development, ownership and
management of shopping and leisure centers in the US.
Representing the acknowledgement by the sector of the Company's activity, we emphasize the awards attributed to Sonae Sierra throughout 2006, in particular the award
for best shopping center in Spain won by Luz del Tajo, in Toledo. Other highly relevant distinction was the Eco Award, in the 'Corporate Social Responsibility Projects Internal Public' category, organized by the American Chamber of Commerce, won in Brazil by the
Personae Project, which aims at making Sonae Sierra the most advanced shopping center company in terms of Health, Safety and Social Responsibility. Sonae Sierra also received an award for the best Portuguese company in the Spanish market, in the 5th edition of the Spanish and Portuguese Chamber of Commerce and Industry awards.
Source: Sonae Sierra